Exhibit 10.1.22



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Exhibit 10.1.22


DATED July 24th, 2007 


     POBT HOLDINGS LIMITED 

(formerly POBT Bank and Trust Limited) 


and 

      CSN Madeira Lda. 

And 

UBS Pactual Symmetry Fund, Ltd. 

 



DEED OF NOVATION 












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THIS DEED OF NOVATION is made the July 24th, 2007. 

BETWEEN: 


(1) POBT Holdings Limited (forrnerly POBT Bank and Trust Limited), a corporation duly organized and existing under the laws of The Commonwealth of the Bahamas, with its principal office located at One Montague Place, East Bay Street,
4th Floor, Nassau, Bahamas ("POBT"); 


(2) CSN Madeira Lda., a corporation duly organized and existing under the laws of Portugal, with its principal office located at Avenida Zarco No 2, 2nd Floor; Freguesia da Sé, Conselho de Funchal, ZIP 900-069 (“CSN
Madeira”); and 


(3) UBS Pactual Symmetry Fund, Ltd., an investment fund organized under the laws of the Cayman Islands, with its registered office located at UBS House, 227 Elgin Avenue, Grand Cayman, Cayman Islands ("Symmetry"). 


WHEREAS 


(A) CSN Overseas and POBT entered into a Share Swap Transaction dated April 2, 2003 (hereinafter called the "Transaction"); 


(B) On July 30, 2004 POBT and CSN Overseas have agreed to amend the confirmations of the Share Swap Transaction, including the Transaction, by changing the Fixed Rate to 7,5% p.a. and the Valuation Date to July 28, 2006 (hereinafter called
“Amendment 1”); 


(C) GSN Overseas, CSN Steel Corp and POBT have entered into a Deed of Novation as of December 28, 2004, in which all rights and obligations of CSN Overseas were transferred to CSN Steel Corp; 


(D) On July 05, 2006 POBT and CSN Steel Corp have agreed to amend the confirmations of the Share Swap Transaction, including the Transaction (hereinafter called simply as “Amendment 2”); 


(E) CSN Steel Corp., CSN MADEIRA Lda. and POBT have entered into a Deed of Novation dated as of June 30, 2007, in which all rights and obligations of CSN Steel Corp. were transferred to CSN Madeira Lda.; 


(F) The Shares described in the Transaction have suffered a Split as of May 30, 2004, where each 1 share has become 4 shares ("Split Event"); 


(G) The Number of Shares described in the Transaction will change from 1,800,000 to 7,200 000, after the Split Event; 


(H) The Transaction will be divided into 2 transactions: (1) in respect to 4,236,211 (Number of Shares) from POBT to Symmetry ("Transaction 1") which is the role of this Deed of Novation and (2) in respect to 2,963,789 (Number of Shares) from POBT
to Fruhling Fund Ltd (“Transaction 2”) which will be the role of another Agreement; 







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(I) The parties wish to enter into this Deed of Novation in order to novate the rights and obligations of POBT under the Transaction 1 from POBT to Symmetry and to substitute POBT for Symmetry thereunder in the manner hereinafter specified; 


(J) The parties hereto wish to novate the Transaction 1 where the Number of Shares will be 4,236,211, the Equity Notíonal Amount will be USD 21,084,088.13 and the Initial Price will be USD 4,97711 and this Transaction 1 is hereby transferred
to Symmetry and, therefore, all obligations arising out from such Transaction 1 of POBT thereunder cease and are assumed by Symmetry instead. 


IT IS AGREED as follows: 


1 . Novation 


1.1 With effect from the date of this deed Symmetry hereby assumes all of the obligations of POBT in respect of the Transaction 1 as if it and not POBT had always been a party to the Transaction. 


1.2 With effect from the date of this deed the Symmetry hereby releases and discharges POBT from all its obligations in respect of the Transaction 1 and agrees to the assumption of those obligations by Symmetry as if Symmetry had always been a party
to such agreement. 


2 Amendment and Confirmation 


2.1 Wth effect from the date of this deed, the Transaction shall be amended and effective as per the Confirmation described in the Schedule 1 with the terms above mentioned of Transaction 1 and all references therein to POBT being changed to
references to Symmetry. 


2.2 Symmetry and POBT hereby confirm that with effect from the date of this deed, the Transaction 1 (described in the Schedule 1) will continue in full force and effect in all respects. 


3. Counterparts 


This deed of novation may be executed in any number of counterparts all of which when taken together shall constitute one and the same deed and any party may enter into this deed of novation by executing any such counterpart. 


4. Governing Law 


The validity, construction and performance of this deed shall be governed by and construed in accordance with the laws of the State of New York, United States of America. 







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IN WITNESS WHEREOF this document has been executed and delivered as a deed the day and year first above written. 



Deed of Novation signed between POBT Holding Limited. UBS Pactual Symmetry Fund. Ltd and CSN Madeira Lda. 






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Schedule 1 to the Deed of Novation signed between POBT Holdings Limited, UBS Pactual SymmetryFund, Ltd and CSN Madeira Lda. As of the date hereof. 


  Transaction 


CSN MADEIRA LDA. 



Date: July 24, 2007 

To: CSN Madeira Lda. 

From: UBS Pactual Symmetry Fund, Ltd. 

Re: Swap Transaction 



Dear Sirs: 


The purpose of this letter agreement (this "Confirmation") is to confirm the terms and conditions of the Share Swap Transaction entered into between UBS Pactual Symmetry Fund, Ltd. (the "Symmetry"), a company
incorporated under the laws of the Cayman Islands, with its with its registered office located at UBS House, 227 Elgin Avenue, Grand Cayman, Cayman Islands and CSN Madeira Lda. ("CSN Madeira") a corporation duly organized and existing under the laws
of Portugal, with its principal office located at Avenida Zarco No 2, 2nd Floor, Freguesia da Sé, Conselho de Funchal, ZIP 900-069, on the Trade Date specified below (the "Transaction"). This Confirmation constitutes a "Confirmation" as
referred to in the ISDA Master Agreement specified below. 


The definitions and provisions contained in the 2000 ISDA Definitions, and in the 1996 ISDA Equity Derivatives Definitions (the "Equity Definitons") as published by the International Swaps and Derivatives Association,
Inc., are incorporated into this Confirmation. In the event of any inconsistency between the Equity Definitions and this Confirmation, this Confirmation will govern. 


1. Calculation Agent: Symmetry 


2. Account Details: 


Account for payments to CSN Madeira: 

Bank: Citibank, N.A., New York 

Account Nr, 36839246 

ABA 021000089 

Swift Code : CITIUS33 


Account for payments to Symmetry: 

UBS AG 

677 Washington Boulevard 

Stamford, CT 06912 

USA ABA #: 0260-0799-3 






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For credit to the account of: 

UBS Pactual Symmetry Fund, Ltd. 

Account #: 101-WA-219404-000 


2. The terms of the particular of the Transaction to which this Confirmation relates are as follows: 


General Terms: 

	Trade Date: 	April 2, 2003 
	 	 
	Effective Date:
    	April 7, 2003 
	 	 
	Termination Date:	The Equity Payment Date
	 	 
	Shares:
    	Companhia Siderurgica Nacional – American Depositary
Receipt – Ticker SID, Cusip 20440W105. 
	 	 
	Exchange:	New York Stock Exchange 
	 	 
	Related Exchange(s): 	All Exchanges 
	 	 
	Exchange Business Day:   	 Notwithstanding anything to the contrary in the definition of "Exchange Business Day" in Section 1.20 of the Equity Definitions, "Exchange Business Day" means any day that each Exchange and each Related Exchange are
open for trading unless the Calculation Agent determines that any failure of such Exchange or Related Exchange to open does not have a material effect on the trading market for Shares. Each such day shall be an Exchange Business Day notwithstanding any such Exchange or Related Exchange closing to prior to its regular weekday closing time. 
	 	 
	Market Disruption Event:	 Notwithstanding anything to the contrary in Section  4.3 of the Equity Definitions, "Market Disruption Event" means the occurrence or existence on any Exchange Business Day (A) at the relevant Valuation Time or at
any time during the one-half hour period that ends at the relevant Valuation Time of any suspension, limitation imposed on, or impairment occuring with respect to trading (by the
relevant Exchange or Related Exchange or otherwise or by reason of movements in price exceeding limits permitted by the relevant exchange or otherwise) in (x) the Share on the Exchange or (y) any options contracts or futures contracts relating to
the Share on any Related Exchange if, in any such case, the Calculation Agent determines that such suspension, limitation or impairment has a material effect on the trading market for the affected financial instruments or (B) of a System Disruption.


 

 

 







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	 	In addition it shall be a Market Disruption Event if the Exchange or Related Exchange closes prior to their scheduled closing time (if, in any such case, the Calculation Agent determines that such earlier closing has a material effect on the trading
  market for the affected financial instruments at the Valuation Time). A "scheduled closing time" is any regular weekday closing time or any closing time announced by the Exchange or Related Exchange„ as the case may be, prior to the close of
  the regular trading session on such Exchange or Relatad Exchange on the previous Exchange Business Day. 




	System Disruption:	 Any event that materially disrupts (as determined by the Calculation Agent) the ability to effect transactions in the Share on the Exchange. The types of disruptions contemplated by this provsion include, but are not limited to, (a) the
temporary closure and re-opening of the Exchange at any point during the regular trading session and (b) a material systems failure of the trading communications and connectivity systems to the Exchange. 




	Equity Amounts Payable by Symmetry 	 
	 	 
	Equity Amount Payer: 	Symmetry 
	 	 
	Number of Shares: 	4,236„211 


 






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	Equity Notional Amount: 	USD21,084,088.13 
	 	 
	Equity Notional Reset: 	 Not Applicable 
	 	 
	Equity Payment Date: 	Three Currency Business Days after the Valuation Date 
	 	 
	Type of Return:	 Price Return 
	 	 
	Initial Price: 	USD 4,97711 
	 	 
	Final Price: 	 Means arithmetic mean of the Relevant Prices of the Shares on each Averagíng Date. 
	 	 
	Relevant Price:	 The last traded price per share quoted by the Exchange. 
	 	 
	Valuation Time:	 The close of trading on Exchange 
	 	 
	Valuation Date(s): 	 July 27, 2007 
	 	 
	Averaging Date (s):	 Every Exchange Business Day between June 27, 2007, inclusive, and July 27, 2007 exclusive. 
	 	 
	Averaging Date Market Disruption: 	 Postponement 
	 	 
	Dividend Amount: 	The Cash Dividend for the relevant Dividend Period multiplied by the number of Shares. Subject to the provisions under "Cash Dividends" below. 
	 	 
	Cash Dividends: 	 100% (the “Percentage Amount") of the gross dividend, (cash or stock dividend) and/or interest on own capital "juros sobre capital próprio" declared and paid by the Issuer to holders generally of record of a single Share
      on the relevant record date during the relevant Dividend Period. For the avoidance of doubt, the "gross dividend" (cash or stock dividend) and/or interest on own capital "juros sobre capital próprio" shall represent a sum before the
      withholding or deduction of any laxes at the source by or on behalf of any applicable authority having power to tax in respect of such a dividend, (cash or stock dividend) and/or interest on own capital "juros sobre capital próprio" and shall
      exclude any imputation or other credits, refunds or deductions granted by any applicable authority having
    power to tax in respect of such dividend and any taxes, credits, refunds or benefits imposed, withheld, assessed or levied thereon. 



 

 






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	Dividend Period: 	Has the meaning specified in Section 7.12 (c) of the 1996 ISDA Equity Derivatives Definitions. 
	 	  
	Dividend as Collateral:	 Any Dividend Amount received by Symmetry shall be promptly deemed posted Collateral three Business Days after the receipt of such Dividend Amount, regardless of any Collacteral call by Symmetry, and to the extent it causes,
      at any time, the amount of deposited Collateral to exceed the Collateral requirement setforth above (i.e., 30% of the Equity Notional Amount), such excess amount shall be released to CSN as provided in "Collateral" below. In the event the Dividend
    Amount effectively received by Symmetry is subject to any deduction or withholding tax, Symmetry shall considered, for the purpose of this section, the net amount effectively received. 

	 	  
	Gross up: 	 All payments to be made by each of the Parties hereto to the other Party under this Transaction will be made without any deduction or withholding tax. 
	 	  
	Reinvestment of Dividends: 	Not Applicable 
	 	  
	Fixed Amounts payable by  CSN Madeira 
	 	  
	Fixed Rate Payer:	 CSN MADEIRA 
	 	  
	Calculation Amount:	 The Equity Notional Amount 
	 	  
	Payment Dates:	 Three Business Days after the Valuation Date subject to adjustment in accordance with the Business Day Convention , provided that, if on such date the corresponding Payment Date has not yet occurred, such Payment Date shall be
      postponed to the date on which the Payment Date occurs and the Fixed Rate Payer shall pay the Fixed Amount due in relation to the relevant
    Calculation Period on that postponed Payment Date. 



 







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	Fixed Rate: 	7.5% p.a. 
	 	  
	Fixed Rate Day Count Fraction: 	 Actual /360 

	 	 
	Business Days: 	Following Business Day Convention 
	 	  
	 Adjustments: 	 
	 	  
	Method of Adjustment:	 Calculation Agent Adjustment 
	 	  
	 Extraordinary Events: 	 
	 	  
	 Consequences of Merger Events: 	 
	 	  
	Share-for-Share:	 Alternative Obligation 
	 	 
	Share-for-Other: 	 Cancellation and Payment 
	 	 
	Share-for-Combined: 	Cancellation and Payment 
	 	 
	 Merger Event 	 (a) "Merger Event" means, in respect of any relevant Shares, any (i) reclassification or change of such Shares that results in a transfer of or an irrevocalbe commitment to transfer all of such Shares outstanding, (ii) consolidation, amalgamation or
      merger of the issuer with or into another entity (other than a consolidation, amalgamation or merger in which such issuer is the continuing entity and which does not result in any such reclassification or change of all of such Shares outstanding) or
      (iii) other takeover offer for such Shares that results in a transfer of or an irrevocable commitment to transfer all such Shares (oher than such Shares owned or controlled by the offeror), in each case it the Merger Date is on or before, in
      the case of a
    Physically –settled Option Transaction, the Expiration Date or, in any other case, the final Valuation Date. 



 






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	 	"Merger Date" means the closing date of the Merger Event, provided, that for a tender Offer, the Merger Date in the date on which shares in the amount of the applicable percentage threshold are actually purchased (as determined by the Calculation
Agent)
	 	 
	Payment Currency: 	 All amounts payable under this Transaction shall be in USD.
	 	 
	Nationalization, Insolvency or De-listing: 	 Cancellation and Payment 
	 	 
	Optional Early Termination:	 CSN Madeira and Symmetry have the rigtht to Early Terminate this Transaction, in whole or in part, provided that the terminating party shall issue an Early Termination Notice addressed to the other party. The parties
hereby acknowledge that any such Early Termination may materially adverse affect the Final Price for the Shares due to market conditions and the number of Shares requested throught an Early Termination Notice, being agreed that the Calculation Agent
will determine the Final Price. In case of a partial Early Termination the parties agree to sign an amendment in order to make the proper ajustments to this transaction and reflect therefrom such Early Termination. 
	 	 
	Early Termination Settlement Amount:	 The amount agreed between the parties. 
	 	 
	Early Termination Date:	 One Exchange Business Day after the date Early Termination Notice has been signed. 
	 	 


 






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	Collateral:	Collateral will be posted by CSN Madeira in an amount equal to 30% of the Equity Notional Amount. The Calculation Agent will calculate on a daily basis if the amount deposited as Collateral, affected by the estimated Settlement Amount in respect of this transaction as if this transaction was terminated at that moment, still represents 30% of the Equity Notional Amount, If at any
      moment this calculation shows a result of less than 20% or more than 40% of the Equity Notional Amount, SYMMETRY or CSN MADEIRA respectively reserves the right to call or redeem respectively for Collateral in order to achieve the previous 30% of the
      Equity Notional Amount. If the result of the aforesaid calculation is different from 30% on any last Business Day of each month SYMMETRY will call or redeem Collateral in order to achieve the previous 30% of the Equity Notional Amount. Without any
      limitation of the foregoing, CSN MADEIRA hereby grants SYMMETRY a first priority security interest in the collateral as collateral for its obligations under this Transaction. Upon any default by CSN MADEIRA (including any default under the
      Transaction or any other transaction between), CSN MADEIRA and SYMMETRY or its affilíated), SYMMETRY shail have ail of the rights with respect to the collateral of a secured party under the Uniform Commercial Code as in effect from time to
    time in the State of New York

	 	 
	Determining Party:	SYMMETRY
	 	 
	Credit Provisions:	 In consideration of SYMMETRY and SDBB MADEIRA entereing ioto this Transaction and in order, to support and secure the obligations of CSN MADEIRA under this Transaction, the Agreement and any other transaction between GEN MA DEIRA and SYMMETRY, CSN
    MADEIRA will from time to time, whenever requested by SYMMETRY deposit with Egible Collateral as provided below always accordance with the dynamic of Collateral.



 






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	Settlement Terms:	

	 	 
	Cash Settlement:	  Applicable
	 	 
	Settlement Currency: 	USD 
	 	 
	Cash Settlement Payment Date: 	 Three Currency Business Days after the Relevant Valuatlon Date or the Eariy Termination Date as the case may be. 
	 	 
	"Eligible Collateral": 	 means cash and/or US Treasury-blils and/or certificates of deposit issued by SYMMETRY or any other financial insititution previously approved by SYMMETRY with the maximum term of 90 days. 


Events of Default and Termination Events 


The occurrence of one or more of the following events during the period from and including the Trade Date up to and including the Termination Date will be considered an Event of Default: 


(i) Fallure to Pay or Deliver; 

(ii) Breach cf Agreement; 

(iii) Misrepresentation; 


(iv) Cross Default, with Threshold Amount of US$10,000,000.00 (or its equivalent in other currencies); 

(v) Bankruptcy; 

(vi) Merger Without Assumption; and 


The occurrence of one or more of the following events during the period from and including the Trade Date up to and including the Termination Date will be considered a Termination Event: 

(i) Illegality 

(ii) Tax Event 

(iii) Tax Event Upon Merger; and  

(iv) Credit Event Upon Merger, provided however that provided, however, that the phrase "materially weaker" means (i) the senior long-term debt or deposits of the resulting, surviving or transferee entity is or are, as the case may be, rated less
  than investment grade by Standard & Poor's Corporation or Moody's Investors
Service, Inc., or (ii) in the event that there are no such Standard & Poor's Corporation or Moody's Investors Service, Inc. ratings, the Policies (as defined below) in effect at the time, of the party which is not the Affected Party, would lead
such non-Affected Party, solely as a result of a change in the nature, character, identity or condition of the Affected Party, from its state prior to such consolidation, amalgamation, merger or transfer, to decline to make an extension of credit
to, or enter into a Transaction with, the resulting, surviving or transferee antity."Policies", for the purposes of this definition means: (1)(A) internal credit limits applicable to individual entities or (B) other limits on doing business with
entities dorniciled or doing business in certain jurisdictions or engaging in certain activities, or (2) internal restrictions on doing business with entities with whom the party which is not the Affected Party has had prior adverse business
relations. 






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Automatic Early Termination: Applicable 


In respect of this transaction, SYMMETRY from the date hereof until the Termination Date (or Early Termination Date), shall at all times be the relevant owner of record and beneficial owner of all the Shares, provided, however, that SYMMETRY may
transfer the Shares to any of its affiliates and may enter into certain transactions, such as selling transactions linked to derivative transactions with the specific purpose of permitting SYMMETRY to leverage its position for a certain period of
time not to exceed the Termination (or the Early Termination Date) to the extent that the Shares may at any time return to its property and possession in order to enable it to comply with its obligations hereunder. 


Addtional Guarantees: 

Companhia Siderurgica Nacional (hereinafter referred as the "Guarantor") hereby unconditionally and irrevocably guarantees to SYMMETRY the due and punctual payment of all sums due by CSN MADEIRA in accordance therewith and when the same become due
and payable. The Guarantor hereby unconditionally and irrevocably waives any and all rights it may have under Articles 827, 828, 838 I, and 839 of the Brazilian Civil Code, and Article 595 of the Brazilian Code of Civil Procedure. In the event the
Guarantor is not allowed to remit the amount due by CSN MADEIRA to SYMMETRY, the Guarantor hereby undertakes to effect the payment in Brazil according to the instructions to be sent by SYMMETRY to the Guarantor in which it will be
indicated the name of the payee in Brazil. 


Reliance on own Expertise:



  The SYMMETRY and CSN MADEIRA represents and guaranty to the other that: (a) it is entering into the Transaction as principal (and not as agent or in any other capacity); (b) the other party is not acting as a fiduciary for or an advisor to it in
  respect of the Transaction; (c) it is not relying upon any representation of the other party except those expressly set forth in the Agreement and it does not hold itself out as advising, or any of its employees or agents as having the authority to
  advise, the other party as to whether or not it should enter into any transaction or as to any subsequent action relating thereto or any other commercial matters concerned with the Transaction, and it shall have no responsibility whatsoever in
  respect of any advice of this nature given, or views expressed, by it to any of such persons to the other party, whether or
  not such advice is given or such views are expressed at the request of the other party; (d) it has consulted with its own legal, regulatory, tax, business, investment, financial and accounting advisors to the extent it has deemed necessary, and it
  has made its own investment, hedging and trading decisions based upon its own judgment and upon any advice from such advisors as it has deemed necessary and not upon any view expressed by the other party; and (e) it is entering into the Transaction
with a full understanding of the terms, conditions and risks thereof and it is capable of assessing and is willing to assume those risks. 






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Offices: 


The office of  CSN MADEIRA for this Transaction is Avenida Zarco No 2, 2nd Floor, Freguesia da Sé, Conselho de Funchal, ZIP 900-069. 


The office of SYMMETRY for this Transaction is UBS House, 227 Elgin Avenue, Grand Cayman, Cayman Islands. 


Jurisdiction: 

This Transaction will be governed by and construed in accordance with New York Law. 


Please confirm that the foregoing correctly sets forth the terms of our agreement by executing the copy of this Confirmation enclosed for that purpose and returning it to us or by sending to us a letter or telex substantially similar to this letter,
which letter or telex sets forth the material terms of the Transaction to which this Confirmation relates and indicates your agreement to those terms.